#1IDB Invest Sal de Vida Lithium Mining Project Argentina Project Description & Environmental and Social Summary December 2023#2SAL DE VIDA LITHIUM MINING PROJECT ARGENTINA PROJECT LOCATION Project Location Catamarca Province, Argentina The Sal de Vida Project (SdV) consists of the construction and operation of a lithium mining project in Salar del Hombre Muerto, located in the province of Catamarca, Argentina, 4,100 meters above sea level and approximately 90 km north of the departmental capital of Antofagasta de la Sierra. The Project will be operated by Galaxy Lithium (Sal de Vida) S.A, a subsidiary of the Allkem Limited group, the fifth-largest lithium producer worldwide. 200000 H 3240000 3240000 REFERENCIAS Ciudad capital Ciudad cabecera ⚫ Campamento Ruta nacional -Ruta provincial -Camino de acceso Limite internacional Limite interprovincial Limite interdepartamental Pertenecias mineras Departamento de Antofagasta Salta Catamarca Antofagasta de la Sierra Tinogasta. 3360000 Catamarca La Rioja La Rioja Campamento 3360000 3480000 Andalgalá 3480000 0 10 km Santa María Catamarca Saujil La Puerta Fray Mamerto. Esquiú San Fernando del Valledo Catamarca Paclin Vallé Viejo Capayán s Escala 1:1.700.000 37 74 km Marco de Referencia: POSGAR 07 Proyección Gauss Krüger, Faja 31 Cartografia base Instituto Geográfico Nacional Ancasti Santa Rosal El Alto Catamarca Cordoba Recreo 3600000 go del Estero 3600000 Campamento GALAXY LITHIUM (Sal de Vida) S.A. PROYECTO SAL DE VIDA ADENDA DE AIIA ETAPA DE EXPLOTACIÓN CAPÍTULO II: DESCRIPCIÓN DEL AMBIENTE UBICACIÓN GENERAL Allkem Sal de Vida Dibujado: L MALSENIDO Revisado G. VACA Proyecto N 107106-01 Ausenco Revisión N°:00 Fecha: 04/08/2022 Figura N-1 080000 IDB Invest 2#3SAL DE VIDA LITHIUM MINING PROJECT ARGENTINA PROJECT LOCATION El Salar del Hombre Muerto Catamarca Province The Salar (the second largest in Argentina) is in Argentina's Southern Puna, an arid ecoregion characterized by sparse herbaceous and shrubby vegetation with less than 300 millimeters of precipitation per year, low temperatures, and high solar radiation. Vegetation consists of scattered grasslands, low shrublands, and extensive arid plains. IDB Invest#4SAL DE VIDA LITHIUM MINING PROJECT ARGENTINA PROJECT LOCATION IDB Invest#5SAL DE VIDA LITHIUM MINING PROJECT ARGENTINA PROJECT LOCATION IDB Invest#6SAL DE VIDA LITHIUM MINING PROJECT ARGENTINA PROJECT LOCATION IDB Invest#7SAL DE VIDA LITHIUM MINING PROJECT ARGENTINA PROJECT SNAPSHOT Sal de Vida - Snapshot Project Overview ☐ ☐ The Sal de Vida greenfield lithium project involves the construction and operation of a lithium carbonate (LCE) plant with a capacity of 15,000 tons per year (equivalent to 50% of Argentina's lithium production in 2022). The project will produce battery-grade lithium carbonate through an evaporation and processing operation for the battery and electric vehicles supply chain. ☐ The Sal de Vida deposit lies within the "Lithium Triangle," a region in the Andes that hosts ~60% of the world's identified lithium metal resources in near-surface brines. Sal de Vida uses brine extraction in its lithium production, the prevailing method used in the Lithium Triangle. Lithium Market Overview Lithium is a critical mineral in the global transition to a low-carbon future as it is one of the best-suited metals for batteries. It's crucial for cathode production in lithium-ion batteries, particularly for electric vehicles, due to their high energy density and specific power. Australia and Chile stand out as the top producers of lithium, accounting for almost 77% of the global production in 2022. Global Lithium brine extraction is centered primarily in Chile (57%), Argentina (15%), and China (27%). Global lithium extraction has been steadily increasing. Wood Mackenzie forecasts a 62 annual growth in mine supply between 2023 and 2033 reaching a peak of 1 291 kt LCE by 2033. However, this won't meet rising global demand, resulting in a potential structural market deficit in the early 2030s. IDB Invest#8SAL DE VIDA LITHIUM MINING PROJECT ARGENTINA PROJECT FACILITIES Sal de Vida Project Facilities IDB Invest The main components of the Project include a well field, together with its brine distribution system; solar evaporation concentration ponds; a lithium carbonate equivalent production plant; harvested salt stockpiles; and ancillary infrastructure (camp, administrative and support buildings).#9SAL DE VIDA LITHIUM MINING PROJECT ARGENTINA PROJECT FACILITIES Well Field IDB Invest#10SAL DE VIDA LITHIUM MINING PROJECT ARGENTINA PROJECT FACILITIES Evaporation Ponds IDB Invest#11SAL DE VIDA LITHIUM MINING PROJECT ARGENTINA PROJECT FACILITIES Ancillary Infrastructure IDB Invest#12SAL DE VIDA LITHIUM MINING PROJECT ARGENTINA DEVELOPMENT IMPACT Sal de Vida - Development Impact Increase value-added production and exports ■ Increased lithium exports contribute to improving productivity and boosting economic growth. IDB Invest Foster employment and on-the-job training During construction, the project is expected to create almost 1,000 temporary jobs. 70% of the workforce comes from local communities. ■ Once operational, the project is expected to create 400 direct permanent jobs, of which 22% will be women. ■ The lithium industry is characterized by high productivity and skilled labor, and the SdV project is expected to create high-paying jobs. The project will train an average of 140 workers per year. Contribute to domestic supply chain growth and renewable energy ■ The project is expected to promote domestic purchases during the construction and operation phases. ■SdV will have a solar photovoltaic plant (PV Plant) of 15 MWac of installed capacity with an estimated annual production of 43210 MWh with 90% of exceedance probability 12#13SAL DE VIDA LITHIUM MINING PROJECT ARGENTINA ADDITIONALITY Sal de Vida - IDB Invest Additionality ☐ Expansion of the company's E&S management system for the Project. ■ Enhancement of the project's E&S organizational capacity. Environmental and Social Technical assistance IDB Invest ■ Development of a Water Studies Roadmap to assess and manage any potential impacts on water resources and ecosystem during the project life cycle. Enhancement of the project's Stakeholder Engagement Plan in line with international best practices. ■ Technical advisory services to develop a strategy to promote economic diversification among local communities, with a focus on women and indigenous communities. 13#14IDB | Invest 2. Environmental and Social Considerations#15SAL DE VIDA LITHIUM MINING PROJECT ARGENTINA BIODIVERSITY AND PHYSICAL ASPECTS El Salar del Hombre Muerto Biodiversity and Physical Aspects IDB Invest The Project is located within the Key Biodiversity Area of the Salar del Hombre Muerto, which is also an important bird and biodiversity area. The typical fauna of this ecoregion includes mammals such as the vicuña, the Andean cat, the red fox, and birds such as flamingos. Some of these species are of conservation interest. There are also endemic plant and animal species The Salar del Hombre Muerto is an endorheic basin (closed water system). The hydrology of the salt flat is regulated by Los Patos River which creates the delta and braided streams that filter into the Salar. This river system feeds into two lagoons and forms several wetlands ("vegas").#16SAL DE VIDA LITHIUM MINING PROJECT ARGENTINA WATER RESOURCES AND BIODIVERSITY Water Resources and Biodiversity IDB Invest Water Management • No freshwater is or will be used in the Project. SDV will not extract fresh water directly from the Los Patos River or from any other superficial water body in the Salar del Hombre Muerto basin. • SDV will extract brackish groundwater from the shallow aquifer near Rio Los Patos. The company has implemented a participatory water monitoring program. Allkem has prepared a "Water Studies Roadmap" (WSR) to assess connectivity across aquifers and surface water features and to manage any potential impacts on groundwater resources, the biota, and ecosystem services during the project life cycle. The results will be verified by an independent auditor and publicly disclosed annually. Biodiversity Project infrastructure has been situated to avoid areas of biodiversity value, such as wetlands, vegetated areas and lagoons of the Salar del Hombre Muerto. 16#17SAL DE VIDA LITHIUM MINING PROJECT ARGENTINA COMMUNITIES IDB Invest Water Participatory Monitoring Sal de Vida has implemented a Participatory Environmental Monitoring Program in which community representatives assist and participate in monitoring the environmental impacts of the project and its corresponding management and control measures. The program includes quarterly meetings to which institutional representatives of the Province and members of local communities are invited to address issues related to the availability and quality of water and to analyze the results of laboratory water samples. Allkem's Community and Social Performance policy declares its commitment to the United Nations Declaration on the Rights of Indigenous Peoples and International Labor Organization Convention 169 on Indigenous and Tribal Peoples, underscoring the importance of early participation, collaborative, transparent and culturally appropriate. The Environment, Health and Safety at Work Policy includes provisions on the efficient use of energy, water and land, the need for participatory environmental monitoring, the reduction of emissions, the minimization of the carbon footprint, and the rational use of water and biodiversity protection. 17#18SAL DE VIDA LITHIUM MINING PROJECT ARGENTINA COMMUNITIES Communities near Sal de Vida Communities in the indirect are of influence of the project (at distances greater than 150 km from the project site) include: Villa de Antofagasta Antofalla, El Peñón Cienega Redonda Los Nacimientos Kometers 1750,000 Antofalla Los Nacimientos Villa Antofagasta de la Sierra El Peñón SAL DE VIDA N IDB Invest 18#19SAL DE VIDA LITHIUM MINING PROJECT ARGENTINA PROJECT LOCATION IDB Invest#20SAL DE VIDA LITHIUM MINING PROJECT ARGENTINA COMMUNITIES Human Settlements in the Project Direct Årea of Influence Pto Vega Tarón Pto Agua Colorada The nearest human settlement to the Project site is Ciénaga Redonda, which is located almost 8km from the site and has approximately 30 inhabitants. There are also some scattered rural dwellings (puestos) within a 50 km radius of the Project. Between Ciénaga Redonda and the puestos, the estimated total population is 80 people. Pto Acasoque Pto La Aguadita Pto Camilio Condori Pto Ciénega Guancha Ciénaga Redonda Sal de Vida Project Site Pto T Hombre Muerto Pto Guaichar Pto Trapiche imientos Pto San Nicolas Pto Pampa Cienega Pto Los Sauces Pto de Barranquilla Pto El Cuerno Pto El Cajon 40 Pto Cerro Gordo Angastaco 30 mi IDB Invest#21SAL DE VIDA LITHIUM MINING PROJECT ARGENTINA COMMUNITIES LINU IDB Invest#22IDB Invest Sal de Vida Lithium Mining Project Project-level Engagement#23SAL DE VIDA LITHIUM MINING PROJECT ARGENTINA PROJECT-LEVEL ENGAGEMENT E&S ACTION PLAN Allkem's Strong Community Relations & Investment Programs • • • • • IDB Invest Health and Wellness Program: visits by medical professionals to all locations in Antofagasta de La Sierra. Community Agricultural Strengthening Program: support to community-based agricultural projects. Community visits and cultural events with information sharing on the SDV project updates and community programs. Capacity Building & Training Programs Partnership with the University of Catamarca with Lithium Brine Technology for training for local populations. Technical training for Installers of Off- Grid Photovoltaic Systems Awareness-raising activities on issues linked to human rights. Community infrastructure investment program Participatory Monitoring of Water Resource Management • Grievance Mechanism Management#24SAL DE VIDA LITHIUM MINING PROJECT ARGENTINA PROJECT-LEVEL ENGAGEMENT E&S ACTION PLAN Adding Value IDB Invest Fostering meaningful stakeholder Engagement by establishing a safe space for two- way communication with stakeholders and culturally appropriate relationships with indigenous populations. Strengthen existing income-generating activities as part of the community investment plan for the long-term benefit of community members. Indigenous People inclusion in social investment programs. Promoting Gender Equality by providing inclusive and secure spaces for work and coexistence.#25SAL DE VIDA LITHIUM MINING PROJECT ARGENTINA CONTEXTUAL RISK Alignment with Sustainable Development Goals 4 QUALITY EDUCATION The Project will provide on-the-job training. 8 DECENT WORK AND ECONOMIC GROWTH 7 AFFORDABLE AND CLEAN ENERGY 9 INDUSTRY, INNOVATION AND INFRASTRUCTURE Increase renewable energy generation. 12 RESPONSIBLE CONSUMPTION Contribution to job generation. economic growth and Contribution to industry growth and sustainability. IDB Invest AND PRODUCTION QO Adoption of sustainable practices promoted through the environmental and social action plan. 17 PARTNERSHIPS FOR THE GOALS The Project will foster exports.#26Sal de Vida 4814 Lithium Mining Project Argentina December 2023 IDB Invest